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EU extends Chinese shoes tax

Dec 22 2009 14:59

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Brussels - The European Union, the world's biggest market, on Tuesday extended punitive taxes on imports of Chinese and Vietnamese shoes.

Ministers from the 27 EU nations "today adopted a regulation extending, by a further period of 15 months, the anti-dumping duty on imports into the EU of footwear with leather uppers originating in China and Vietnam," a statement from the bloc's presidency said.

The decision was taken "by simple majority, without discussion," it added in reference to reservations expressed by a group of countries led by Britain during talks last week on the issue.

A diplomatic source said that 13 countries voted against extending the taxes, just one short of the number required to block the measure.

The extension of anti-dumping duties, first introduced more than three years ago and hotly contested by Beijing, was rubber-stamped without debate by European environment ministers meeting in Brussels.

The measures were introduced in retaliation for Asian footwear being sold in Europe at below production cost.

The anti-dumping measures in the EU - home to half a billion people - carry import duties of 16.5% levied on Chinese shoes with leather uppers and 10% on the same kind of shoes from Vietnam.

Bigger manufacturers that make their shoes in Asia such as Diesel, Adidas and Puma, fought against the renewal of the shoe tariffs.

In a statement, the European Footwear Alliance, which speaks for brands including Diesel, ECCO, Levi's, Timberland, Merrell, Rockport and Hush Puppies, said the decision "lays to rest any lingering notion that the European Union still intends to fight protectionism".

It said the EU's "opaque trade policy will result in payment of anti-dumping duties well in excess of &euro1bn ($1.43bn) for European footwear businesses, which will ultimately be paid for by EU consumers."

Figures from the European Commission show that Chinese and Vietnamese shoes make up 30% of the EU footwear market.

China earlier this month expressed its "strong dissatisfaction" with the levy, which it said was "inconsistent with World Trade Organisation rules and unfair and untransparent".

- AFP

 
 
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